Early Retirement Extreme Forums

Hello everyone,

For those of you who don't know colleges around the US are pretty much at a standstill right now due to coronavirus fears. This has left me with some spare time for formulating plans. From what I can gather we will be seeing a recession soon; and if not there is a reasonable chance that one happens within the next few years. I have read that the general mindset of ERE is by nature resistant to recession (have multiple income sources, invest in skills, don't rely on spending $).

Because I am aware of that I am not exactly in fear of a recession. I am, however, wondering about the best specific application of the general principles given the current situation. I am approaching this from the perspective of someone who is not currently in the labor force or the market (no savings). If I plan on entering the workforce during a recession/economic slowdown, what should my preparation be? So far I have considered building income sources outside of my intended career, focusing on getting into the health/education industry, getting an unskilled job in the immediate/short term to build up savings, and attempting to find some kind of training role for a useful skill (ex. mechanic). I think all of these ideas have some pros and cons so I was hoping to hear some analysis, and of course there are an infinite amount of plans I haven't thought of. I am already practicing some of the "standard" advice of budgeting, spending as little as possible, learning about the items I use, avoiding use of a car, and cooking, so I was looking this question mostly from the angle of building buffers against loss of income as opposed to lessening dependency on income itself.

edit: This was written in the first person, but answers related to what you are doing/ will or would do/ would do in my situation are much appreciated.

When in college you only have a set amount of time to get the skills needed to snag your first job in your field, and if you expect a recession (or just exiting a recession) around when you graduate, competition for most jobs could be very high. If you adopt the ERE web of goals approach, you might risk trying to form too broad of a web of goals and that could hurt your chances to stand out as a candidate trying to enter a specialized field.

So I would say think of a narrower web of goals to that will set you up to compete in an employer's market. After you start your 9-5 job you will have plenty of years to expand to the broader Renaissance ideal. For now, a narrow web of goals doesn't just include the academic knowledge taught in your courses, but soft skills as well - networking with teachers and successful students, working on your speaking/presentation skills, time management, writing, and interpersonal skills. Basically if everybody knows you and likes you, that will greatly help your chances of getting a job you want straight after graduation, even if you aren't at the top of your class. Of course these other skills beyond your coursework will continue to help you in other ways in your career and life too.

If I plan on entering the workforce during a recession/economic slowdown, what should my preparation be?

While are recommendations aren't things you should exclusively only due if there's a recession/economic slowdown they're probably even more important than when times aren't lean. With that being said, of the many things you can do we'd recommend you:

Leverage your current network and continue to learn a skill(s) or build a business before finishing school. You’re more likely to be chosen to interview (or hired) because you’re recommended by someone on staff vs simply being picked out of a pile of resumes.

Also, brainstorm all the people you know (your friends, friends of friends, friends of your parents, former colleagues, acquaintances, social network connections, etc.) and how they could be of help (contract work, full time employment, be a reference, help with increasing your knowledge, skills, and work experience, etc.). Set up meetings and connect with them before departing. It's a great opportunity to ask for leads but also to connect before you depart. Not everyone will respond, but be genuinely thankful and pick up the tab for the drink or meal for those who do. You'll find more success when you can find ways to be of help to them, rather than just asking for help.

Ultimately we think it comes down to asking yourself, 'what things can/should I do to stand apart from everyone else that will make more hire-able to a potential employer?' What skills, classes, certifications, contacts, memberships, side hustles, techniques, awards, etc. will help me rise to the top?

We hope that helps!

@shadow it is a tricky question, because it depends a lot on your situation. E.g. if you can live with your parents without troubles, then you have much less to worry about than someone who has to rent by themselves (more so if you have a family, but it is probably too early nowadays).

The good part is that if you are a college student, lifestyle inflation probably did not touch you yet. So you don't need that much money to get by in trying times, this is your strength.

Anyway, personally, I'd get a job as soon as you think it is safe and build your savings, enough in cash. To get through recessions, you just need money, that's it; also, jobs exist, it is just that many people don't like them. Like if you graduate in a specific industry, and it crashes during recession, I'd recommend to work somewhere else for a while (not trying to get into your major at all cost).